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09Aug91 UK: BABCOCK ENERGY CONSORTIUM LOOKS SET TO WIN £100M POWER STATION CONTRACT.

Hampshire County Council is poised to give Babcock Energy Consortium a contract for a £100 million power station that will turn household waste into electricity.The council, which is about to send its letter of intent, is discussing a formal agreement with the consortium which includes the award of a non-fossil fuel order electricity contract, finance and a waste disposal service agreement.The plant will be built in Portsmouth on the site of an existing incinerator and will have an output of almost 40 MW - sufficient to heat and light 30,000 homes each year.The Babcock consortium will build the incinerator and sell the electricity under a design, build, own, operate and transfer contract. After 20 years ownership will pass to the local authority.The council said: 'Site clearance will begin next spring if everything goes according to plan.' Commercial production of electricity is scheduled to begin in 1995.The plant will burn waste from 350,000 homes in south Hampshire, amounting to 73 per cent of the country's total household waste. This will be supplemented by a small proportion of commercial waste.A council spokesperson said: 'The plant will generate 37.7 MW, of which 32.8 MW will be exported, on the assumption that the plant will use 390,000 tonnes of waste per annum. Of this, 350,000 tonnes is Hampshire County Council's waste.'Planning permission is now being applied for and the scheme is out to public consultation.